CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$28,428.00
  • ethereum
    ETH$1,822.02
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Senators Slam Stablecoins in Latest Push For Tighter Regulations

    Senators Slam Stablecoins in Latest Push For Tighter Regulations

    Author: Martin Young

    Last Updated Dec 15, 2021 @ 07:16

    Stablecoins are yet again under the spotlight as U.S. Senators launch an attack on dollar-pegged cryptocurrencies in their latest call to clamp down on the industry.

    Massachusetts Senator Elizabeth Warren is leading the charge against crypto once again. In a video posted on Dec. 15, she said that stablecoins pose risks to consumers and the economy because they are “propping up one of the shadiest parts of the crypto world, DeFi, where consumers are least protected from getting scammed.”

    It is not the first time she has branded the crypto industry “shady” or similar. In July, the angry Senator said that “shadowy super coders” were behind crypto, making it a threat to the U.S. financial system.

    This most recent tirade was unleashed at a Senate Committee on Banking, Housing, and Urban Affairs hearing on Dec. 14.

    Stablecoins pose risks to consumers & to our economy. They’re propping up one of the shadiest parts of the crypto world, DeFi, where consumers are least protected from getting scammed. Our regulators need to get serious about clamping down before it is too late. pic.twitter.com/hMOT1HIQgn

    — Elizabeth Warren (@SenWarren) December 14, 2021

    Senators on the Stablecoin Warpath

    Stablecoins do threaten the traditional financial system as they were designed to. The Federal Reserve controls the dollar, and it has plunged the economy into crisis with unprecedented money printing resulting in a 40-year-high inflation rate.

    ADVERTISEMENT

    This must be what the Senator was referring to regarding consumer protection.

    At the same hearing, Senator Sherrod Brown joined his compatriot and labeled crypto as “magic money.” Senator Brown opened the hearing with a tirade against stablecoins and their relationship with this “new fantasy economy.” He added that they facilitate users risking money on volatile and sometimes fraudulent cryptocurrencies.

    Just a week ago, a number of crypto CEOs and executives traveled to Capitol Hill to explain the role of stablecoins and what the industry was all about in an effort to quell concerns and these sweeping statements. Those efforts appear to have fallen on deaf ears judging by the vehemence coming from these anti-crypto policymakers.

    The hearing occurred the same day that Tether was hit with another lawsuit which CTO Paolo Ardoino labeled “nonsense and copycat.”

    In the Crypto Corner

    Six Senators have been fighting in support of the industry, however. In a letter sent to Treasury secretary Janet Yellen on Dec. 14, Senators Rob Portman, Mark Warner, Mike Crapo, Kyrsten Sinema, Pat Toomey, and Cynthia Lummis urged for crypto-specific regulations.

    Their particular umbrage was the use of the term “broker” in the recently passed infrastructure bill that would see software suppliers, mining operations, and wallet providers liable for tax reporting.

    “We urge the Department of the Treasury to provide information or informal guidance as soon as possible – no later than the end of the current calendar year – regarding the definition of “broker” as discussed during the legislative process.”

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • USCongress
      The US Government Has Released Its Stablecoin Report
    • European Central Bank Building. Source: Fortune
      ECB Brings Crypto and Stablecoins Under Payments Regulatory Framework
    • SenatorToomey
      Senator Toomey Promises to Fix Flawed Crypto Brokerage Language In Infrastructure Bill
    Tags: Regulations Stablecoins US Congress
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Martin J. Young
    More posts by this author

    Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

  • bitcoin
    BTC$28,428.00
  • ethereum
    ETH$1,822.02
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    15 Months Later, What Changed Since November 2021? Interview With Phantom Wallet CEO

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    Artificial Intelligence & Crypto Guide: Here Are the Top 5 AI Coins

    How to Keep Your Crypto Safe, MetaMask Future Plans, and Digital Identities: Talking Wallets With PM Alex Jupiter

    How to Keep Your Crypto Safe, MetaMask Future Plans, and Digital Identities: Talking Wallets With PM Alex Jupiter

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!